IBM Sues Platform Solutions Inc. Over Mainframe Patent Infringement

Strategic Insights -

IBM has brought a lawsuit against Platform Solutions Inc. (PSI), a start-up trying to build servers that run IBM's z/OS mainframe operating system on Intel's Itanium chips. The suit accuses PSI of infringing five IBM patents and breaching a contract that prohibited PSI from translating IBM's legacy software for use on other architectures. IBM claims that PSI's actions threaten the accuracy, data integrity, and reliability of z/OS, and seeks declaratory judgments to absolve itself of potential antitrust claims.

Key Takeaways:

  • IBM is suing PSI for patent infringement and breach of contract, alleging that PSI's servers translate IBM's z/OS code for use on Itanium chips.
  • PSI is accused of infringing five IBM patents, including "Program Controlled Rounding Modes" and "Method and Apparatus for Determining Floating Point Data Class."
  • IBM claims that PSI's actions threaten the accuracy, data integrity, and reliability of z/OS, and seeks declaratory judgments to absolve itself of potential antitrust claims.
  • The suit alleges that PSI has repeatedly threatened IBM with antitrust action and substantial damages, and has even taken the issue to IBM CEO Sam Palmisano.
  • PSI has been backed by investors including Goldman Sachs and Intel, and has described the mainframe as "one of the last frontiers for open systems."
  • IBM claims that PSI's actions will induce users to infringe IBM's IP, and that it may marshal other patents after examining a PSI machine.

Statistics:

  • 5: The number of IBM patents allegedly infringed by PSI.
  • 60%: The percentage of corporate data still residing on mainframes.
  • 1,200: The number of instructions in the z/OS and S/390 instruction set.
  • 1999: The year in which Platform Solutions Inc. was founded by ex-Amdahl engineers.
  • 1997-2004: The time period during which the patents allegedly infringed by PSI were issued.
  • $: The amount of damages IBM claims PSI has threatened.

Sources:

  • IBM (Company) - patent infringement and breach of contract lawsuit (no date)
  • Platform Solutions Inc. (Company) - website (no date)
  • IBM (Company) - patent portfolio (no date)
  • Goldman Sachs (Company) - investment in Platform Solutions Inc. (no date)
  • Intel (Company) - investment in Platform Solutions Inc. (no date)